Transcript

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>> Uber is acting unlawfully in Britain. The verdict of a landmark legal battle of a driver's employment rights. Reuters' correspondent Costas Pitas in London says, it's a big blow to the company's business model.>> Well see judges today, in Britain, ruled that two drivers from Uber who took a case to them should be entitled to workers' rights.

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At the moment, Uber drivers are self-employed. It means they're not entitled to things like the minimum wage, sick pay, holiday entitlement. This ruling means that they are now entitled to that.>> Uber says, it will appeal the decision. But if it fails, it will face a hefty bill.

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Lawyers representing its drivers to hold another hearing to calculate just how much. Bad news for other firms in this so-called gig economy too.>> The key factor is that this would apply to other firms that use the same way of employing their drivers, so that could be Addison Lee.

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It also apply to other companies, tech startups that work in different areas. So Deliveroo, for example which is a meal delivery service. So this could affect great parts of the economy, the geek economy, as it's known, which is basically people working for different companies. Maybe even different companies on the same day without that sort of fixed contract that a full time employee would normally have.

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>> In April, Uber agreed to pay up to $100 million to settle a similar class action lawsuit in the US. It allowed the ride hailing service to keep its California and Massachusetts drivers as independent contractors. Friday's ruling in the UK though could prompt other countries where it operates, to follow suit